Brazilian energy firm Eneva is joining forces with compatriot investment company Servtec to develop a new LNG import terminal in Brazil in order to meet the country’s growing demand for the fuel.
Eneva said in a statement on November 20 that the two firms had signed a cooperation agreement to evaluate alternatives for the development of an LNG terminal at the Port of Itaqui or in its surroundings, in São Luís, in the State of Maranhao.
According to the statement, Servtec has already been working on the development of a project to build an LNG terminal at the port. The firm previously presented an expression of interest to Empresa Maranhense de Administracao Portuaria – EMAP regarding the LNG project.
Additionally, Servtec is evaluating alternatives for the development of an LNG terminal in other locations in the vicinities of Itaqui.
The final decision to invest in the terminal is subject to completing the assessments and obtaining the necessary licenses and authorizations for the implementation of the project, the statement said.
Under the terms of the new deal, Eneva will have exclusive rights to the LNG project until
December 30, 2022, and, after that date, first refusal right until December 30, 2023.
The partners plan to form a joint venture in which Eneva will hold 51% of the total shares and Servtec will hold the remaining 49%.
Also, the transaction is subject to technical studies and to the assessment of the project’s
financial feasibility by Eneva, which will decide whether to sign definitive agreements.
Eneva did not reveal any additional information regarding the project.
More LNG projects to come
According to GIIGNL, Brazil currently has five FSRU-based LNG import terminals but this number will rise in the upcoming years.
Brazilian joint venture Gas Natural Acu has also recently commissioned the first plant as part of its LNG-to-power project in the Port of Acu in Rio de Janeiro.
Besides the GNA I facility, the JV is also building the GNA II LNG power plant located in the Port of Acu. These two plants have 3 GW of installed capacity, forming the largest gas-to-power project in Latin America.
In addition, Brazil’s state-owned energy firm Petrobras and Texas-based floating LNG player Excelerate Energy recently signed a lease deal for the Bahia LNG terminal.
Excelerate has provided regasification services in Brazil since 2012, operating at Petrobras’ LNG terminals in Bahia, Guanabara Bay, and Pecem.
In September 2020, Excelerate’s FSRU Experience broke an industry record for send-out capacity by reaching 1.06 billion cubic feet at the Guanabara Bay LNG regasification terminal.